SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
A company wants to prevent users from sharing files containing personally identifiable information (PII) with external recipients. They also need to notify users if they attempt to share such files. Which Microsoft Purview solution should be configured?
⚠ Common exam trap
Many candidates confuse Sensitivity Labels with DLP, but Sensitivity Labels only classify and protect data without enforcing sharing restrictions or user notifications, whereas DLP is the solution that actively monitors and blocks the external sharing of sensitive data.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Microsoft Purview Data Loss Prevention
Microsoft Purview Data Loss Prevention (DLP) is the correct solution because it is specifically designed to detect, prevent, and notify users about the sharing of sensitive data, such as personally identifiable information (PII), with external recipients. DLP policies can be configured to automatically block the sharing of files containing PII and display a policy tip notification to the user when they attempt to share such content.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Microsoft Purview Sensitivity Labels
Why it's wrong here
Sensitivity labels classify and encrypt content, but they neither detect PII patterns automatically nor block sharing with a user notification. They suit persistent protection travelling with a file. Data loss prevention matches PII and blocks external sharing with policy tips.
- ✗
Microsoft Purview Communication Compliance
Why it's wrong here
Communication Compliance scans chat, email, and Teams messages for policy violations, but it does not evaluate file content at the point of sharing or block external recipients. It suits detecting harassment, insider risk, and regulatory language breaches in communications.
- ✗
Microsoft Purview eDiscovery
Why it's wrong here
eDiscovery identifies and preserves content for legal investigations and holds; it does not inspect outbound sharing in real time or block it. It is the right choice for litigation, regulatory requests, and case review, not for preventing PII leaving to external recipients.
- ✓
Microsoft Purview Data Loss Prevention
Why this is correct
DLP policies inspect content for sensitive information types such as PII, then block sharing with external recipients and surface user notifications or policy tips. This directly satisfies both the prevention and notification requirements, unlike labels or retention, which govern classification and lifecycle rather than real-time sharing control.
Go deeper
Related to this question
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Microsoft Purview Compliance Portal
Key term
DLP
Data Loss Prevention — security technology that detects and prevents unauthorised transmission of sensitive data outside an organisation.
Key term
Microsoft Purview
Microsoft Purview is a unified data governance and compliance service that helps organizations discover, manage, and protect their data across on-premises, cloud, and hybrid environments.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This SC-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SC-900 exam.